DERIVATIVE FINANCIAL INSTRUMENTS (Tables)
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9 Months Ended |
Sep. 30, 2021 |
DERIVATIVE FINANCIAL INSTRUMENTS |
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Schedule of contracts on the balance sheet |
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As of |
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September 30, 2021 |
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December 31, 2020 |
Liabilities |
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Commodity derivative instruments |
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$ |
(38,402,944) |
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$ |
(3,287,328) |
Derivative liabilities, current |
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$ |
(38,402,944) |
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$ |
(3,287,328) |
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Commodity derivative instruments |
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$ |
(6,061,724) |
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$ |
(869,273) |
Derivative liabilities, non-current |
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$ |
(6,061,724) |
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$ |
(869,273) |
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Schedule of components of Gain (loss) on derivative contracts |
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Three months ended September 30, |
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Nine months ended September 30, |
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2021 |
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2020 |
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2021 |
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2020 |
Gain (loss) on oil derivative |
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$ |
(6,720,320) |
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$ |
(4,502,080) |
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$ |
(73,387,510) |
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$ |
32,900,767 |
Gain (loss) on natural gas derivatives |
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— |
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— |
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(198,689) |
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— |
Gain (loss) on derivative contracts |
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$ |
(6,720,320) |
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$ |
(4,502,080) |
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$ |
(73,586,199) |
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$ |
32,900,767 |
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Schedule of components of Cash (paid) received for commodity derivative settlements |
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Three months ended September 30, |
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Nine months ended September 30, |
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2021 |
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2020 |
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2021 |
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2020 |
Cash flows from operating activites |
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Cash (paid) received on oil derivatives |
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$ |
(14,921,008) |
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$ |
1,726,373 |
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$ |
(34,030,310) |
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$ |
18,814,068 |
Cash (paid) received on natural gas derivatives |
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— |
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— |
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743,178 |
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— |
Cash (paid) received from derivative settlements |
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$ |
(14,921,008) |
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$ |
1,726,373 |
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$ |
(33,287,132) |
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$ |
18,814,068 |
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Schedule of put and call prices of those contracts |
Throughout 2020 and the first half of 2021, the Company entered into additional derivative contracts in the form of costless collars, puts and swaps for 2021 and 2022 calendar period for both oil and natural gas. The following tables reflect the details of current contracts as of September 30, 2021:
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Date entered into |
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Period covered |
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Barrels per day |
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Put price |
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Call price |
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Swap price |
Oil derivative contracts |
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2021 costless collars |
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2/25/2020 |
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Calendar year 2021 |
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1,000 |
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$ |
45.00 |
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$ |
54.75 |
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2/25/2020 |
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Calendar year 2021 |
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1,000 |
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45.00 |
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52.71 |
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2/27/2020 |
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Calendar year 2021 |
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1,000 |
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40.00 |
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55.08 |
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2021 put |
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3/2/2020 |
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Calendar year 2021 |
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1,500 |
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40.00 |
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2021 swaps |
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11/25/2020 |
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Calendar year 2021 |
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2,000 |
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$ |
45.37 |
12/2/2020 |
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Calendar year 2021 |
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500 |
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45.38 |
12/3/2020 |
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Calendar year 2021 |
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500 |
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45.00 |
12/4/2020 |
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Calendar year 2021 |
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500 |
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45.40 |
12/4/2020 |
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Calendar year 2021 |
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500 |
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45.60 |
12/7/2020 |
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Calendar year 2021 |
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500 |
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45.96 |
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2022 swaps |
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12/4/2020 |
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Calendar year 2022 |
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500 |
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44.22 |
12/7/2020 |
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Calendar year 2022 |
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500 |
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44.75 |
12/10/2020 |
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Calendar year 2022 |
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500 |
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44.97 |
12/17/2020 |
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Calendar year 2022 |
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250 |
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45.98 |
1/4/2021 |
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Calendar year 2022 |
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250 |
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47.00 |
2/4/2021 |
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Calendar year 2022 |
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250 |
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50.05 |
5/11/2021 |
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Calendar year 2022 |
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879 |
(1) |
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49.03 |
(1) |
The notional quantity per the swap contract entered into on May 11, 2021 is for 26,750 barrels of oil per month. The 879 represents the daily amount on an annual basis.
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